The Handbook of Municipal Bonds

APPENDIX B

Glossary of Terms

Mitchell Savader Chief Executive Officer The Savader Group LLC and Managing Director Civitas Funding Group LLC

 

 

 

Accrued interest Interest costs that have been incurred, but not yet paid to the bondholder.

Additional bonds test A legally binding covenant that requires the obligor to meet predetermined requirements before additional, identically secured bonds can be issued.

Ad valorem tax A tax levied on the value of property owned by the taxpayer. Commonly refered to as property taxes.

Advanced refunding A refunding of a bond that uses money from a new bond that is issued in advance of the date that the original bond can be paid off. The money from the new bond is usually invested in an irrevocable escrow account until the date when it is used to pay off the original bond.

Amortization The gradual repayment of a bond according to a specific time schedule.

Appropriation An authorization by a government’s legislative body to make an expenditure or expenditures for a specific purpose.

Assessed valuation The value of property for purposes of levying ad valorem—property taxes.

Audit The examination of an entity’s (such as a city, county or state) financial data, systems, and procedures to assess their accuracy and compliance with legal requirements.

Balloon payment A principal payment that is far larger than prior or future individual principal requirements.

Basis point A basis point is equal to 1/100th of 1% (i.e., a one basis point increase in an interest ...